Pimco Leads ‘Go-Anywhere’ Funds Veering Off-Course as Rates Fall
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Pimco Unconstrained Bond Fund and other “go-anywhere” bond funds created during the 2008 credit crisis went mostly to the wrong places in 2011 after missing a rally in Treasuries and buying riskier assets that lost ground.
Funds that Morningstar Inc. calls “non-traditional” declined an average of 1.8 percent this year through Dec. 5 while the Barclays Capital U.S. Aggregate Bond Index gained 7 percent, the Chicago-based research firm said. The $15.5 billion Pimco Unconstrained Bond Fund, the biggest such fund, has lost